Essilor Luxottica

Good morning and good afternoon, everybody. This is Giorgio Iannella from the IR team. Thank you for joining SRO Luxottica Interim Results Management Call. The Group Chairman and CEO Francesco Milleri, the Deputy CEO Paul Dusayan and the CFO Stefano Grassi will walk you through the business and financial highlights of the first half of the year. After their presentations, there will be a 30-minute Q&A session. If you want to make a question, please press star followed by five. We kindly ask you to limit your questions to a maximum of two. With that, I hand over to Francesco.

Welcome, everyone. I am pleased to reconnect with you to share our first half financial results and update you on our progress in MedTech and wearables. Let's begin with our long-term vision. We believe the future of glasses goes far beyond vision correction. They will become innovative, powerful, AI-enabled platforms that support human performance and healthcare at various levels. Thanks to our unique scale, capability, and global reach, we are in a position to lead this transformation. As a vertically integrated group, we are developing smart eyewear that combines vision care with digital functionalities. With access every year to over half a billion customers, we have the ability to collect a huge amount of data we are positioned to further innovate in many fields such as diagnostics, early disease detection and high health, even identifying health risks, for example in neurodegenerative and cardiovascular areas. Our ambition is to become the world's leading processor of healthcare metrics using a network of smart eyewear equipped with sensors and cameras to collect and analyze information. This is the core of our MedTech strategy and the destination of our long-term journey. Now, looking at our H1 performance, we are pleased with our revenues growth of 7.3% at constant currency, with solid momentum across both quarters. We maintain a stable adjusted operating margin year over year after our relevant investments in R&D, AI, L-data collection and hearing aids that reflect our focus on the long-term innovation. We have entered in the medtech space by acquiring high-quality companies with proprietary technologies. This includes our recent acquisition of Optegra High Clinics, a strategic move that extends our reach across the full eye care journey, with advanced diagnostics, therapies and surgeries. Optegra brings strong medical expertise and contributes to expand our offering. Pilot tests in diagnostics and surgical treatment will soon begin also in our optical retail across the world. Turning to smart glasses, we are excited to launch Oakley Neta, our fast AI glasses under this iconic sports and lifestyle brand. The new collection is about to be launched, while the 50 years anniversary limited edition is already well received by the brand fans. This sets the start of Oakley's journey in smart eyewear and there is more to come. Ray-Ban Meta continues to perform exceptionally well, with sales growing more than 200% year over year. The rollout of the live AI, including new features like the real-time translation and the wider adoption of transition and prescription lenses, are all supporting the product growth. In hearing aid glasses, Nuance Audio is rolling out successfully, now available in 10,000 doors across North America and Europe, including both optical and hearing care channels. It's receiving strong feedback for both its technology and features, as well as high prescription lens adoption, now over 80%. many exciting initiatives at work in SELOR Luxottic. A lot of opportunity ahead for our big startup company. Our ambition is to get the scale in terms of business diversification and worldwide reach to be the leading innovator in the healthcare category with smart glasses, medical devices, digital systems, big data and AI vertical healthcare specialization. As a recognition of all that, I would like to highlight that Essilor Lux Optica has been named by Time Magazine among the 100 most influential companies of 2025 in the category of innovative. It's good to see that our goals and journey fully reflect into our stakeholders' perception. With that, I hand over to Paul.

Thank you, Francesco. Hello, everyone. It is great, as always, to be with you. You have just heard from Francesco about our latest breakthrough innovation that has hit the ground. Being able to constantly deliver such disruptive technology to the market requires, in my opinion, three key dimensions. A unique ability to imagine products that push the boundaries. A very solid core business to build new categories on. And robust human and industrial capabilities. And go to market to execute our ambitions. Together with our leadership team, we are deeply focused on driving the high-paced execution of our strategy. To supporting this, we constantly adjust our organization, expanding the scope of key leaders and managers. While nurturing key internal talents, we continue to bring in new competencies. Leveraging our recent acquisition would bring to us great new skill sets. Our integrated supply chain is, as you know, a key capabilities, characteristics of the group. Just keep in mind that every year we produce more than 100 million frames and 700 million prescription answering lenses. it implies a unique set of expertise. We did continue to invest in it in the first half of the year to add capacity and flexibility, which is of paramount importance in the current environment. In May, we celebrated the official opening of our new state-of-the-art prescription laboratory in France, so-called LABEX, that is supporting our wearable and nettech ambition also. More recently, we inaugurated a manufacturing site in Laos that will become a center of excellence for the production of polycarbonate lenses. And we continue to ramp up our industrial campus, new campus, in Thailand and Mexico. All our new facilities are built to meet the highest sustainability standards. To support this roadmap, we recently inaugurated a large-scale solar farm at our Barberini site in Italy with a total power of 20 MW. Now, our performance in the first half of the year was driven by our unparalleled product and brand portfolio. Francesco already talked about our wearable category with Reban Meta and now also Oakley Meta. and you also do. But we continue to strengthen our pipeline of product to address vision care needs and meet individual style aspiration with our new well received frame collections. You have heard it before, the myopia epidemic affecting young children is one of our biggest challenges for our industry. will affect half of the world population by 2050. Ethylor Hypsotica has been leading research in this field for more than four decades, culminating in the launch of the first-generation Ethylor Steles lenses now worn by millions of children in close to 50 countries. It is supported by an amazing confirming its long-term efficacy. Leading on this success, we are now launching Essilor Celeste 2.0, which offers an even higher efficacy compared to the first version. It is being rolled out in China as we speak, with more markets to come soon. At the same time, the sight-glass vision dot technology is also making great strides in China under the Nikon and Kodak brand. Myopia management brought us closer to the doctors, and the dialogue with the scientific community has become even deeper thanks to our push into medtech, in particular with Heidelberg Engineering, widely recognized for its invaluable contribution to the research of visual disorders. The International Spectralis Symposium, held in June, is a great illustration of this. In the field of presbyopia, I am pleased to share that we continue to unlock a constant flow of innovation across brands. Vidus has just expanded its range with the PhysioExtensy which optimizes vision clarity in any light by being able to predict the pupil size variation of its wearers. Nikon has recently come out with Nikon Z, a new design focused on contrast management, while Shamir has reached great success with its Autograph progressive lenses. Transition light management. I believe we have really achieved something interesting here. It is a great example of how we take a groundbreaking technology, create a platform, and apply it transversely across our entire category range. Initially used with the prescription lenses, we expanded it to Plano, then made it a core benefit of our Reban Meta, where the penetration now goes beyond 50% in our direct-to-consumer channel. It's fueling our organic growth. Speaking about frames, in recent months, I've seen so much creativity going into our new collections, from optical to sun, from high-end to entry-level. Let's take Ray-Ban and its new cool waferer-puffer model, available in a variety of bold colors. We are also researching novel materials to be used in high-wear and have recently showcased copper-titanium-powered ultralight frame. While our Everflex material is the perfect companion for active kids, designed to handle bumps and bends. At Oakley, alongside the new Hi-Rap models, Masseter and Lateralis, we have just launched for the 50th anniversary, already 50 years, of Oakley. ellipse limited edition to celebrate the action space collaboration taking the ok technology to the moon as you can see we have such a comprehensive offer of products and brands arising from our relentless focus on innovation which combined with our unique go-to market capabilities have allowed us to keep fueling the mix and delivering a robust and balanced growth across all channels categories and geographies i am now over to stefano who will tell you more about our business and financial performance thank you over to you stefano hello everyone and welcome to the first half 2025 earnings release